In a report published Monday, BMO Capital Markets reiterated its Market Perform rating on Cimarex Energy (NYSE: XEC), and raised its price target from $61.00 to $65.00.

BMO Capital noted, “We raised our estimates on higher production. We're modeling 14% growth in 2013 with a ~$100mm CF outspend on a ~$1.5bn budget. Stronger headline production growth (versus ~2% in 2011/12) could help re-rate the shares higher. Following Friday's ~800bp outperformance, the shares are trading in line with our coverage on multiples and at our after-tax NAV. That said, the shares trade at a discount to Permian peers and disclosed Permian inventory is likely understated, plus well results are improving, arguing for a higher NAV and additional upside.”